LocationsPartnerships to Bridge Financing Gap for Youth and Women Innovators in Tanzania
March 29, 2023
UNDP and CRDB staff in a group photo
A recent meeting between the United Nations Development Programme (UNDP) and CRDB Foundation, a Tanzanian philanthropic organization, focused on improving opportunities and livelihoods for women and youth in Tanzania's innovation ecosystem. CRDB Foundation is a non-profit organization established in 2015 by CRDB Bank to support economic development initiatives in Tanzania, and it has helped more than 300 projects across the country.
UNDP Resident Representative, Christine Musisi (R) and Funguo Programme Manager, Joseph Manirakiza
The UNDP Resident Representative, Christine Musisi, reiterated UNDP's commitment to youth and women's empowerment, stating that they are developing a youth portfolio to address challenges faced by youth and women and enhance opportunities and livelihoods for inclusive and sustainable development in Tanzania. UNDP's Innovation Program 'Funguo' bridges the financing gap for youth innovators in Tanzania by providing funding, training, and support to start-up ventures. This program is focused on supporting youth-led and women-led businesses to enable scaling of ventures and enhance productivity in the innovation ecosystem.
CRDB Foundation CEO, Tully Mwambapa, emphasising a point during a partnership meeting
CRDB Foundation's initiative, Imbeju, which means 'seed,' aims to provide seed capital for innovative ventures, particularly those led by youth and women. Imbeju is a revolving fund divided into competitive and non-competitive categories and is implemented in collaboration with the Tanzania Commission for Science and Technology and the Tanzania Information and Communications Technology Commission. CRDB Foundation CEO, Tully Mwambapa expressed eagerness to partner with UNDP's Funguo Program to develop an initiative that will help tackle challenges faced by women and youth in innovation and start-up financing.
Tanzania's youth unemployment rate was 6.5% in 2020, and women's labor force participation rate was 80.6%, according to the World Bank. However, financing for youth-led and women-led businesses remains a challenge, with only 8% of women entrepreneurs in Tanzania having access to formal financing. Moreover, only 1% of Tanzanian firms use technology to increase productivity, indicating the need for investment in innovation.
UNDP Resident Representative, Christine Musisi and CRDB Foundation CEO, Tully Mwambapa
UNDP and CRDB Foundation recognize the financing gap for innovators in Tanzania's innovation ecosystem and hope to collaborate to diminish this gap and strengthen opportunities for innovators in Tanzania. With both organizations working together, there is hope for a brighter future for Tanzania's innovators and entrepreneurs. The possible partnership between UNDP and CRDB Foundation is a step towards creating a more conducive environment for innovation and entrepreneurship in Tanzania.